Report on housing prices says no need to panic....yet

Doesn't this sound like the chatter going on in the US back around 2007 before the balloon that was their housing market went BANG!!!

-From the CBC-
Average prices have grown more than twice as fast as family incomes since 2001, but BMO's report argues there's no reason to panic yet.  (Emphasis mine)

Like many I've been waiting for the bubble to burst, but continued low interest rates have largely kept real estate values afloat and now mortgage rates are at an all time low of 2.99%.  For those who worry more about monthly carrying costs than about over paying, this is providing a nudge into the market, so perhaps prices can hold on for a little while.

But watch out fot 2013 when Canada's sub prime mortgages come due. 

Remember those 40 year ams with zero down?  They started being offered in 2008 when the global economy just starting to slip off a cliff.  It did serve us well in the short term, bolstering our economy.  It won't be much longer though before we find out whether the cure was worse than the disease.

Homeowners who dove into an overvalued market with no skin in the game are going to be facing renewals with a shorter am and increased monthly costs. 

In the meantime you can watch "expert" opinion from the US talking about how fundamentals and demographics  were going to prevent the US housing market from collapsing.

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